TMHC Sector Rotation Swing Trading: 13.04% Profit, 78% Uptrend Odds
A Swing Trading Sector Rotation Strategy Demonstrates Strong Potential: Generating 13.04% for TMHC
In recent times, the Swing Trader: Sector Rotation Strategy (TA&FA) has proven its mettle by generating a promising 13.04% return for Taylor Morrison Home Corporation (TMHC). This gain showcases the potential of using a combined technical and fundamental analysis strategy in navigating the financial market landscape.
The strategy, which incorporates elements of swing trading and sector rotation, focuses on capturing gains from short-term trends within specific sectors. By leveraging both Technical Analysis (TA) and Fundamental Analysis (FA), this strategy provides the trader with a holistic view of the market, thereby offering a higher degree of accuracy in predicting price movements.
In a recent scenario, TMHC stock demonstrated a positive 3-day advance of +1.35%. The historical analysis reveals an intriguing insight: when TMHC advanced for three consecutive days, it experienced further growth in the subsequent month in 239 out of 305 observed cases. This outcome implies that the probability of TMHC continuing its upward trajectory is approximately 78%.
This statistical data, while offering a positive indication, is primarily based on past trends and behavior. As a swing trader, one needs to utilize this information with a strategy that offers flexibility and quick response to market changes.
The essence of the Swing Trader: Sector Rotation Strategy lies in the capacity to shift focus swiftly between sectors, depending on their performance. This strategy aligns with the philosophy of 'buy low and sell high', but over a relatively shorter timeframe than traditional long-term investment strategies.
In the case of TMHC, the combined approach of TA&FA facilitates a comprehensive assessment of the company's potential, allowing for calculated decisions regarding entry and exit points. This strategy assists in identifying promising opportunities based on short-term price fluctuations, market trends, and overall economic indicators.
The recent gain of 13.04% for TMHC as facilitated by the Swing Trader: Sector Rotation Strategy (TA&FA) underlines the strategy's potential in capitalizing on market trends. Through the careful balancing of technical and fundamental analysis, swing traders have the tools they need to capture significant gains over short-term market fluctuations. This approach is becoming an increasingly relevant strategy for modern-day traders seeking to optimize their trading performance in a dynamically evolving market.
TMHC in upward trend: price may jump up because it broke its lower Bollinger Band on March 13, 2025
TMHC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 31 cases where TMHC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 24, 2025. You may want to consider a long position or call options on TMHC as a result. In of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TMHC just turned positive on March 20, 2025. Looking at past instances where TMHC's MACD turned positive, the stock continued to rise in of 59 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TMHC advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
TMHC moved below its 50-day moving average on February 26, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TMHC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TMHC entered a downward trend on March 25, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TMHC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.225) is normal, around the industry mean (7.196). P/E Ratio (8.765) is within average values for comparable stocks, (103.177). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.437). TMHC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.046). P/S Ratio (0.908) is also within normal values, averaging (88.859).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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General Information
a developer of entry-level and luxury homes
Industry Homebuilding